“These free offerings aren’t for premium mass at all,” says a gaming expert from an international brokerage who would like to remain anonymous. Marketing conventions state that the primary tactic utilized by operators to appease high-end mass players is to offer complimentary hotel rooms.
However, as the market becomes more competitive, more and more casino operators in Macau have entered this price war-like conflict.
According to the expert, “this reinforces the market view about intense competition—everyone has to spend to draw in customers in order to increase their gross gaming revenue (GGR).”
MGM Macau began providing known bubble tea, Häagen-Dazs ice cream, and various bakery products in its gaming areas for free earlier this year. Wynn Macau also introduced Moutai latte and ice cream, a known Chinese liquor brand, for its members inside the casino.
Following these, Ponte 16 started providing BBQ pork rice, and Parisian began serving croissant ice cream.
The marketing approach has generated a lot of positive social media reviews, primarily guides explaining how to score free food at casinos, and it has also given the casino properties additional visibility.
The expert points out that “these free offerings, however, are very effective in terms of promoting themselves through word-of-mouth.”
A growing number of small and medium-sized enterprises (SMEs) in the area are exerting pressure on the Macau operators about their free offerings strategy.
Pressure on small and medium-sized enterprises in the area
A growing number of small and medium-sized enterprises (SMEs) in the area are exerting pressure on the Macau operators about their free offerings strategy. Local small company survival space is being eliminated by the complimentary snacks, according to representatives from a few local SMEs.
According to information obtained by AGB, the Macau government has already started talking with the concessionaires about ending this practice in the future. But as of now such complimentary snacks and drinks are still accessible in Macau’s casinos.
